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Supervisors hear economic analysis as treasurer defends hotel-tax enforcement for airline crews; hearing continued
Summary
City analysts estimated stricter enforcement of the transient-occupancy tax on airline flight crews could raise about $3 million in occupancy taxes but cost roughly $12.5 million in spending and about 95 jobs; Treasurer Jose Cisneros said the office is applying the law as written and the board continued the matter for further study.
Treasurer Jose Cisneros told the Government Audit & Oversight Committee the city is enforcing the transient-occupancy tax (TOT) according to the ordinance and a recent tax-collector regulation, and that the permanent-resident exemption applies only when a guest continuously occupies the same room for 30 days or more. "We are not denying the permanent resident exemption to airlines or anyone else," Cisneros said, adding that the office’s May regulation simply clarified the rule for operators.
An economic-impact report from the Office of Economic Analysis, presented by senior economist Kurt Fuchs and Ted Egan, modeled a scenario in which enforcement causes about 15% of airline flight-crew room nights to shift to…
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